Certificate of Deposit
We’ve Got A Certificate of Deposit That’s Right For You
Farmers and Merchants Bank offers a variety of CD term lengths to meet your needs. Interest can be compounded, paid by check, or directly deposited into your Farmers & Merchants checking or savings account. Withdrawal penalties may be charged on all early redemptions.
Plan for the future with our CD’s or an IRA. To learn more about specific features, check out the individual account types that interest you. Please contact us directly for the current interest rates.
Interest can be compounded, paid by check, or directly deposited into your Farmers & Merchants checking or savings account.
Assuming the interest is compounded, the annual percentage yield will be earned. Interest payments received in the form of a quarterly check or direct deposit, will result in a lower yield on the account.
All CD interest rates will be fixed upon the term and opening of the CD.
Upon maturity of the CD, a 10-day grace period is granted to withdraw your funds without penalty.
If not redeemed, certificates will automatically renew upon maturity of the CD. The certificate will renew for a period equal to the original term.
Withdrawal penalties may be charged on all early redemptions.
Until the CD matures, additional deposits into or partial withdrawals from the CD may not be made.
Individual Retirement Account
You might also be able to save on your present taxes with an Individual Retirement Account, by deducting your qualified contributions from your taxable income. Many Americans can deduct all or part of their IRA contributions from current income taxes. The deductible amount depends on your income, marital status, and whether you’re an active participant in an employer-sponsored plan as defined by the Internal Revenue Service.
When planning your savings for retirement, consider opening a Farmers & Merchants Bank IRA. We offer short and long term Roth, Traditional and Educational IRA’s to meet your specific needs. Contributions to an IRA may be fully or partially tax-deductible, depending upon several things such as marital status, participation in a company pension plan, tax filing status and adjusted gross income.
It takes a good solid analysis to determine which IRA is best for you. Therefore, please contact a personal banking representative for additional information, including IRA rollovers, early withdrawal penalties, contribution limits and general account requirements. Please contact your tax advisor for questions pertaining to tax deductibility of your contributions.
IRA Tax Savings Potential Chart
| IRA Deductible Contribution Amount | 10 % Tax Bracket Savings | 15 % Tax Bracket Savings | 25 % Tax Bracket Savings | 28 % Tax Bracket Savings | 33 % Tax Bracket Savings | 35% Tax Bracket Savings |
|---|---|---|---|---|---|---|
| $500 | $50 | $75 | $125 | $140 | $165 | $175 |
| $1,000 | $100 | $150 | $250 | $280 | $330 | $350 |
| $2,000 | $200 | $300 | $500 | $560 | $660 | $700 |
| $2,250 | $225 | $338 | $563 | $630 | $743 | $788 |
| $4,000 | $400 | $600 | $1,000 | $1,120 | $1,320 | $1,400 |
If You’re Changing Employers, An IRA Rollover Makes Sense. If you are retiring or changing jobs and anticipate withdrawing money from your employer’s retirement plan, you can avoid withdrawal penalties by transferring your assets into an IRA or another qualified plan. You can ask your employer to arrange for a “direct rollover” of your money into a new IRA account with us, or you can do it yourself with an IRA-to-IRA rollover.
You must complete the rollover within 60 days from the date you receive the assets from your old IRA in order to qualify and not pay the mandatory 20% withholding and possibly other penalties as well. For more information about IRA Rollovers or opening a new IRA just give us a call at 913-795-2212.